Swedish Match is a global company, with strong local brands. Swedish Match also has international brands, such as General snus and Cricket lighters. The Company’s largest markets are in Scandinavia and the US.
|Swedish Match shipment volumes||2018||2017|
|Moist snuff, US||126.3||127.4|
|Snus and nicotine pouches, outside Scandinavia1)||25.2||13.2|
|Cigars, million of sticks||1.703||1.629|
|Chewing tobacco, thousands of pounds||6.093||6.341|
|Matches, billion sticks||64.5||65.0|
|Lighters, million units||333.9||368.1|
1) Includes snus volumes from date of acquisition for V2 Tobacco (August 31, 2017) and Gotlandssnus (August 22, 2018).
Snus and pouch products without tobacco in Scandinavia
The Scandinavian snus market is estimated to have amounted to slightly more than 390 million cans in 2017, up by close to 4 percent from previous year.1) Consumption has been migrating from traditional loose products to pouch products, which at the end of 2017 accounted for more than 80 percent of volumes in Scandinavia.1) Swedish Match holds the leading position in Scandinavia with Sweden being the largest market. The Scandinavian market also includes pouch products with neither nicotine nor tobacco. In late 2016, Swedish Match introduced nicotine pouches without tobacco on the Swedish market on a limited scale and expanded the distribution during 2017.
1) Swedish Match’s estimates using Nielsen data (excluding tobacconists for Sweden), full year 2017.
Moist snuff in the US
The moist snuff market in the US is concentrated in the southern and mid-Atlantic states. In 2017, the market is estimated by Swedish Match to have grown by approximately 1 percent, to more than 1.5 billion cans, with the pouch segment growing more rapidly than the overall market and accounting for approximately 16 percent. Swedish Match holds the number 3 position for moist snuff in the US.
1) Swedish Match and industry estimates, full year 2017, on a can equivalent basis.
Snus and nicotine pouches without tobacco outside Scandinavia
The main market for Swedish snus and nicotine pouches without tobacco outside Scandinavia is the US. The US snus category in recent years has shown growth and in 2017 was a 55-60 million can market. Swedish Match holds the number 2 position in this market. Swedish Match is currently also active in the snus markets in Canada and Malaysia. A relatively new product category in the US is nicotine pouches without tobacco. This category is small, but is growing at a rapid pace.
Chewing tobacco in the US and Europe
Swedish Match sells traditional chewing tobacco in the US, as well as chew bags, a modern form of chewing tobacco, in certain European markets. The US chewing tobacco market is in a long term state of volume decline. It is estimated that the market declined by approximately 7 percent in 2017. However, the decline was more pronounced in the premium segment where Swedish Match has a leading position. The decline was approximately 10 percent in this segment. During the year, Swedish Match has been gaining share in both segments with slower than industry volume declines. Swedish Match holds the leading position for chewing tobacco in the US. In Europe, the market for chew bags is small, but growing. Denmark is one of the larger markets with a market size of approximately 2 million cans. After acquiring V2 Tobacco during 2017, Swedish Match has broadened its geographical footprint for chew bags. The competitive landscape within this category has seen new players in the market during the past years, including BAT and Imperial, among others.
Significant markets for chew bags in Europe
1) Swedish Match and industry estimates, full year 2017.
Cigars in the US
Swedish Match estimates that the US mass market cigar market grew by approximately 10 percent in volume terms in 2017 and amounts to approximately 7.2 billion cigars excluding little cigars1) (a segment in which Swedish Match does not participate). The market is highly competitive with extensive activity for low priced and promotional products. Swedish Match is the largest player in the natural leaf segment and also participates in the larger homogenized tobacco leaf segment. For the total market for mass market cigars in the US, Swedish Match estimates that it holds the number 2 position based on actual shipments.
1) Little cigars are typically filter tipped and packaged in packs of 20 (similar to cigarette packaging).
2) Full year 2017 based on CMPP.
3) Swedish Match and industry estimates for mass market cigars excluding little cigars, full year 2017.
Lights products have been used for a variety of occasions. The market for traditional match products has been declining in most markets over the past decade while lighter use has shown growth in some markets, most notably in Asia. Swedish Match has a strong presence in Latin America, especially Brazil, as well as in large parts of Europe and Asia Pacific.
Match competition varies widely between markets. Lighter competitors include Bic, Tokai, Flamagas, and a number of other smaller manufacturers.